17 December 2018
Long-Term Ownership of Battersea Power Station Agreed
Contracts exchanged on the re-organisation of the ownership of the commercial assets of the world-famous building.
Transaction demonstrates Malaysian shareholders’ long-term commitment and confidence in the strong progress being made with the project.
Battersea Power Station Development Company (BPSDC) is pleased to confirm that an agreement has been entered into between Battersea Phase 2 Holding Company Limited and Permodalan Nasional Berhad (PNB) and The Employees Provident Fund Board of Malaysia (EPF) for PNB and EPF to acquire the commercial assets within Phase 2 of the Battersea Power Station (BPS) development.
Phase 2 comprises the Power Station building itself which accounts for some six acres of the overall 42 acre BPS development. The transaction will create a long-term asset management and ownership structure for this iconic building.
PNB which is one of the largest asset management companies in Malaysia and the EPF, which is Malaysia’s premier retirement savings fund, already own 70% of the entire Battersea Power Station development through their holdings in the current developers and in the case of EPF through a direct 20% holding. The transaction is being undertaken by a joint venture vehicle owned 65% by PNB and 35% by the EPF.
The base purchase price is £1.583bn payable as an initial payment and then staged payments up to and including the practical completion of the Power Station building. The transaction is expected to complete in Q1 2019.
The transaction will not affect the shareholdings in Battersea Project Holding Company Limited, which remain unchanged between S P Setia (40%), Sime Darby Property (40%) and EPF (20%). The shareholders are committed to the development and positive on its long term prospects.
BPSDC continues as the development, estate and asset manager for all Phases of the development.
Significant progress is being made on the restoration of the Power Station building which is due for completion in late 2020 and opening to the public in 2021. Of the one million square feet of commercial space available in the Power Station building, more than 50% has already been let as office space to Apple for their new London Campus and to No18, a business members club owned by IWG. The retail and leisure spaces were launched to the market earlier this year and strong interest has been seen from a wide-ranging collection of UK and international brands. Battersea Power Station is becoming one of the most exciting new neighbourhoods in and a unique shopping and leisure destination for Central London.
The first phase of the wider redevelopment, Circus West Village, is already open with more than 1,000 residents living here and almost two million people having visited the variety of independent restaurants, shops, bars and leisure facilities that have already opened.
The MBNA Thames Clippers River Bus has been running since last year and a new Zone 1 London Underground station on the Northern Line will also provide strong transport links to the rest of the capital.
Commenting on the Transaction:
Datuk Wong, Chairman of BPSDC, said:
“This transaction is a further sign of Malaysia’s long-term commitment to Battersea Power
Station. We are incredibly proud to be stewards of this iconic project. There is a real
momentum on site and we look forward to working with all our partners to complete this
Simon Murphy, Chief Executive of BPSDC, said:
“This reflects confidence in the excellent progress being made at Battersea Power Station and
is an important step in ensuring this London landmark is appropriately owned and managed
for future generations. We are working closely with all our shareholders and stakeholders to
deliver this huge regeneration project on time and within budget and in so doing both achieve
their objectives and create a vibrant new neighbourhood for Central London.